Home Buying in Fresno>Question Details

bella93703, Renter in Fresno, CA

How long do we have to wait to be able to get a decent mortgage loan after chapter 7 bankruptcy?

Asked by bella93703, Fresno, CA Tue Jan 1, 2013

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I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. I introduced a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
0 votes Thank Flag Link Sun Jul 28, 2013
Very important to know that the "2years" being state below for conventional financing requires an EXTENUATIONG circumstance for as the explanation for your BK.
Extensuation circumstance on bankruptcies are considered:

"nonrecurring events that are beyond the borrower's control that result in a sudden significant and prolonged reduction in income or a catastrophic increase in financial obligations."

Circumstances must be documented and verified.

Credit must be perfect after BK, as well.

You can get back i nto the market with FHA or VA after 2 years of the discharge date.
0 votes Thank Flag Link Sun Jan 20, 2013
This may vary depending on the lender...

Some lenders are more strict than others, so I recommend you to ask to different lenders that you trust.

But, usually, you would have to wait a while...
0 votes Thank Flag Link Sat Jan 19, 2013
Depending upon the Lender; 2-3 years.
Didn't your Attorney explain this before you filed?
I expect that Lenders are going to be flexible with people who went through Foreclosures and Shortsales; they will need the business, and there are so many victims out there.
But BK's have been with us for many years; I do not anticipate the same level of flexibility.
0 votes Thank Flag Link Wed Jan 9, 2013
If you are looking for someone in Fresno. Please give me a call.
0 votes Thank Flag Link Wed Jan 2, 2013
For an FHA loan it is two years with good reestablished credit. Three years for a conventional.
Conventional will tier your pricing depending on your credit score.
0 votes Thank Flag Link Tue Jan 1, 2013
I remember mortgage rates in the high teens, and to me anything below 6% is awesome. That said, if you have been building your credit from day one, after filing...you are on the right track. You may be able to get a great rate in as little as one year after filing, if you follow a good plan. Financial Planners and many great local bankers can guide you on the best approach to rebuilding a stronger credit profile for your specific situation.
0 votes Thank Flag Link Tue Jan 1, 2013
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